The following income statement and additional year$-$end information is provided.

SONAD COMPANY

Income Statement

For Year Ended December $31$

Sales $ $1,710,000$

Cost of goods sold $837,900$

Gross profit $872,100$

Operating expenses

Salaries expense $ $234,270$

Depreciation expense $41,040$

Rent expense $46,170$

Amortization expenses$$Patents $5,130$

Utilities expense $18,810345,420$

$526,680$

Gain on sale of equipment $6,840$

Net income $ $533,520$

Accounts receivable $ $26,000$ increase Accounts payable $ $15,650$ decrease

Inventory $27,075$ increase Salaries payable $3,850$ decrease

Prepare the operating activities section of the statement of cash flows using the direct method.

Note: Amounts to be deducted should be indicated with a minus sign.